Proprietor received rental income other than business, how to record in books.

 

 

savin Bank account Dr

   to party account.

Than 

Party account Dr.

    to  rental income 

 

Or 

Bank account Dr.

    To capital account

Replies (6)
Quick Summary
This discussion clarifies how a proprietor should record rental income received from sources other than their primary business. The consensus is that if the rental income pertains to personal property and is not part of the business operations, it should not be included in the business's balance sheet or capital account. Instead, this income should be declared directly on your income tax return.

What is the actual rent income...???

Sir,

 

As per the statement it is almost lakh every month. 

Whether this rental income pertains to Business or Personal ?? nd if personal than is it received in the Bank account of Business please clarify
Originally posted by : Manish sharma
opening quote Sir,

 

As per the statement it is almost lakh every month. 
closing quote

Hello,

Is this Commercial rent or Residential rent...??

If it is personal property then no need to show in balance sheet neither in income nor in capital account
This rental income will be shown directly in income tax return

Aggreed with Altamush

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register